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When Is the Best Time to Hire a Financial Advisor? 4 Pro Tips

Are you on the fence about hiring a financial advisor?

There’s a lot of mystery surrounding this role.

Only 30% of consumers hire financial advisors. Half of surveyed adults view these services as too expensive. CNBC reported that 99% of adults do their own financial planning.

Understandably, much of this hesitancy is due to service fees. However, ROI is getting lost in the conversation.

While hiring professionals cost money, consider the cost-benefits of such expertise. Financial advisers understand investments, retirement, insurance, and more strategies for building wealth.

Building wealth is just one reason to work with a certified financial adviser.

Discover more reasons to hire an expert!

1. You’re Thinking About Your Future

Let’s expand more on the first point of wealth-building.

It’s never too early to start thinking about wealth-building. Wealth is the key to a stable financial future. While you can take on this task yourself, financial advisers can help you avoid common pitfalls.

Here are a few mistakes that derail wealth-building:

  • Bad investment decisions
  • Playing the stock market incorrectly
  • Get rich quick schemes
  • Multi-level marketing scams
  • Illegitimate financial products
  • Timeshares
  • Rent-to-own homes and products
  • Bad real estate purchases
  • Identity theft scams

You don’t even have to pay for an advisor right away. A free consultation can do wonders when you’re lost. Make the most of your consultation by discussing your retirement goals, yearly income, credit, and more details.

What If I Have debt?

Like service fees, debt also prevents people from seeking much-needed expertise. In fact, debt is one of the best reasons to hire a financial adviser.

Debt is a huge obstacle to financial security. Fortunately, a financial adviser can give you the tools to turn your situation around. An expert can explain consolidation options, payment strategies, refinancing, budgeting, and more.

How Do I Retire?

You can’t ponder your financial future without retirement questions popping up.

  • When should I retire?
  • How much money do I need to retire comfortably?
  • What if I never retire?
  • When can I start collecting social security benefits?

These are important concerns.

A financial advisor will explain social security and suggest the best retirement strategies for your income. They’ll even boost your retirement income with strategic investments.

Financial advisors also help with the following retirement plans:

  • 401(k)
  • Solo “one-participant” 401(k)
  • IRA
  • Simplified Employee Pension (SEP) IRA
  • Self-directed IRA
  • Employee Savings Incentive Match Plan (SIMPLE) IRA
  • Health savings accounts (HSA)
  • 403(b)
  • 457(b)

Advisors customize retirement strategies from multiple plans and resources. For example, Henson Crisp works with different pension types, like workplace pensions and SIPPs, to help clients retire comfortably.

Plus, experts can help you manage your social security benefits once you turn 66.

2. You Inherited a House or Estate

Did you recently inherit a house or a family member’s estate?

Estate planning can be a confusing process, especially when you have no experience. Financial advisors understand the nuance and complexities of estate planning.

Estate planning strategies include:

  • Trusts and trust gifts
  • Lifetime annual gifts
  • Family limited partnerships
  • Irrevocable life insurance trusts
  • Intra family loans
  • 529 accounts

Inherited homes also pose challenges.

A financial advisor can suggest different solutions, like selling the house or turning it into a rental property. If you need money, you can sell your inherited home in “as is” condition for quick cash.

Help! I Inherited a Timeshare

You may have great memories of your parents’ summer timeshare growing up, but it’s not the wisest investment. Unfortunately, parents pass down their timeshares because they’re contractually obligated to them.

Timeshares are tricky because they’re marketed as investments. Thus, owners think their timeshares are accruing value when they aren’t. Owners realize the hard way when they try to sell their timeshares.

A financial advisor can suggest ways of getting out of a timeshare. They may get in touch with a timeshare cancellation expert or explain other legal ways of cancelling it.

3. You Want to Buy or Sell Your Home

A financial advisor can help you sell your inherited home or refer a real estate agent who can negotiate the best price for the house.

You could even use the money to invest in a second home.

An advisor may suggest that you purchase a home with a record of appreciating property values.

What If I Don’t Have Enough Money for a Home?

You don’t have to be wealthy to benefit from professional financial advice. In fact, a financial advisor can help you save money for your first home.

Remember, financial advisors are experts at debt management. They can help you pay down your debts quickly, while saving money for a new house.

An advisor can suggest strategies for paying off your student debt, credit cards, and auto loans. They also have the inside scoop on the best mortgages for first-time homebuyers.

Why stop with one home? Real estate is also an investment strategy.

Financial advisors look at data to suggest properties with the best ROI. You can also generate passive income with rental properties.

4. You’re Dealing with Unexpected Life Changes

Life doesn’t always follow a predictable path. A sudden life change can occur, prompting new financial questions.

Instead of navigating a new financial terrain alone, talk to a financial advisor who can help.

Here are a few life changes that impact finances:

  • Sudden death in the family
  • Unexpected divorces
  • Life-changing illnesses and injuries
  • Aging parents with dementia and care needs
  • House fires
  • Major weather damage

It always helps to be prepared beforehand. For example, if you live in a flood-prone area, you could talk to an advisor about the best insurance options. The same applies to homeowners who live close to wildfires.

Financial advisors can guide you through financial issues related to divorce and custody too. They’ll also help you with medical care budgeting.

Find the Right Financial Advisor

It’s never too early or too late to seek the help of an experienced financial advisor. Use this guide to hire the right expert for your needs. Don’t be afraid to explore new strategies for securing your future.

Staying informed is another financial strategy. Check out the blog to discover the latest news.